Direct Selling in Q2 – Confronted With Challenges

Direct selling industry had not made a great start to 2022. The review of seven major direct sales companies’ reports indicate external challenges the industry has been facing continued in the second quarter, too. Challenges the businesses had to deal in Q2 were twofold: Those that are pandemic-related and the war in Europe.

Direct selling, Q2 2022

Closer Look at Supplement Brands

Herbalife – As far as the regional performances are concerned, Mexico (+4%) and Asia-Pacific (+15%) posted increased sales. Sales in South & Central America declined by -6%, in North America by -17%, in EMEA 21%, and in China by -41%.

NuSkin – Nu Skin’s global sales in the second quarter were $561 million, down 20% from Q2 of 2021. Among the regions, Southeast Asia/Pacific (+12%) and Hong Kong/Taiwan (+2%) grew but all others reported sales decreases: Americas -10%, Japan -18%, South Korea -22%, EMEA -39%, Mainland China -44%.

The company said Mainland China continued to be very challenged with the lockdowns impacting business momentum negatively for several quarters. China accounts for about 1/5 of company’s global business.

USANA – USANA reported 21% decline in sales in the second quarter compared to the same period of 2021 ($264 million vs. $337 million). The number of company’s active customers also dropped by 14%.

All of USANA’s regions came up with revenue decreases in Q2: Greater China -15%, Americas and Europe -19%, North Asia -23%, and Southeast Asia Pacific -37%. Greater China remained as the largest region with its over 50% share in company’s total sales.

(Source: worldofdirectselling.com)

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